An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors.
Advantage:-
One of the main advantages of mutual funds is that they give small investors access to professionally managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult (if not impossible) to create with a small amount of capital. Each shareholder participates proportionally in the gain or loss of the fund. Mutual fund units, or shares, are issued and can typically be purchased or redeemed as needed at the fund's current net asset value (NAV) per share, which is sometimes expressed as NAVPS.
Earnings depend on performance obviously, so do due diligence and go with one you feel most comfortable with. Check mutual funds through brokers (online or branch located), again, more research for best fitting broker. And you can get one through said broker, by financial advisor or you can do your own research on best fund through that broker and just invest directly without assistance, usually less commission with latter. Always watch maintenance fees with the funds. Check out ETFs as well.
So how does a mutual fund work? How can I get into one? How much money do I need to get into one? And how much money could I earn from a mutual fund?
